US marks first year of Trump’s return: Trade, tariffs and shifting alliances

Marking one year since returning to the White House, U.S. President Donald Trump on Wednesday reflected on what he described as a “historic” election victory, as his administration’s economic, immigration and foreign‑policy decisions continue to influence both domestic conditions and global relationships. Trump, who began his second term in January, has governed with a focus on economic nationalism, prioritising domestic manufacturing, stricter border enforcement and a more assertive use of tariff tools in trade negotiations.

Over the past year, the administration has broadened tariffs on a range of imported goods from China, Mexico, India and several other economies. The White House argues the measures are necessary to reduce reliance on overseas supply chains and protect U.S. industries from lower‑cost competition. However, consumer surveys show many households experiencing higher day‑to‑day living expenses, including increased grocery, fuel and utility costs, as import‑linked production expenses are passed on to buyers. Small and mid‑sized businesses that depend on foreign components have also reported pressure on operating margins. A U.S. Supreme Court case set to be heard in the coming weeks will determine the scope of presidential authority to impose such tariffs, a ruling viewed as significant for the future of U.S. trade policy.

Immigration has remained a central priority. The administration has tightened asylum eligibility, expanded border operations and accelerated deportation processes. Supporters say these steps have strengthened law enforcement and reduced irregular crossings, while critics argue they have weakened humanitarian protections and due‑process rights at the border. The H‑1B skilled‑worker visa programme, widely used by technology companies including those based in India, has also seen stricter compliance reviews. While the overall quota remains unchanged, employers now face higher documentation requirements to demonstrate that roles are specialised and cannot be filled by domestic workers. Indian IT and engineering firms report longer processing times and are adjusting by increasing U.S.‑based hiring and training.

On the international front, Trump’s second term has contributed to changes in alliance priorities. The administration has pressed NATO partners to enhance defence‑spending commitments and strengthened security cooperation with Indo‑Pacific nations. Relations with China remain strained, shaped by technology export controls, investment screening and strategic competition in Asia. The U.S. has also increased domestic oil and natural‑gas production, influencing global energy supply patterns and contributing to fluctuations in pricing. Supporters describe this as a step toward “energy independence,” while environmental groups warn of long-term climate implications.

For India, the United States remains an important security and technology partner. The two countries hold regular joint military exercises in the Indo-Pacific and have expanded cooperation on semiconductor manufacturing, clean-energy transition and critical-mineral supply chains. However, trade ties have seen friction, particularly involving U.S. tariffs on Indian steel, aluminium and select manufacturing categories, and India’s reciprocal tariffs on U.S. agricultural and industrial goods. Negotiations on broader frameworks are ongoing, as both governments weigh consumer-cost pressures alongside the need to diversify supply chains and strengthen strategic resilience.

In foreign-policy developments beyond trade, Trump’s high-profile statements and initiatives have drawn global attention. During his 2024 campaign, he promised he could end the war between Russia and Ukraine “within one day” if elected, a promise he later acknowledged as figurative. Although the U.S. fully supports Ukraine’s defence, Trump has alternately criticised Ukraine’s handling of the war, initially signalled willingness to engage with Russia, and later committed to helping guarantee Ukraine’s security in any future deal. Meanwhile, in the Middle East, he unveiled a 20-point plan aimed at ending the war in Gaza. The proposal includes creating a transitional governance body in Gaza, establishing a multinational stabilization force and mandating a cease-fire and hostages-for-prisoners exchange.

Analysts note that the administration’s approach has placed greater emphasis on bilateral arrangements rather than broader multilateral trade systems. This shift has contributed to a more fragmented international economic environment, but one in which national interests are more directly stated in negotiations.

As Trump marked the first anniversary of his return to power, the administration maintained that its policies are aimed at strengthening U.S. economic security and reducing external vulnerabilities. The coming months, including the Supreme Court ruling on tariff authority and ongoing supply-chain coordination with key partners, are expected to shape the trajectory of U.S. economic and strategic policy in the years ahead.